Weekly Trading Forecasts for Major Pairs (July 2 – 6, 2018)

[analyst75]

Here’s the market outlook for the week:

 

EURUSD

Dominant bias: Bearish

The market is bearish, but price was not able to go downwards seriously last week. Thus the market is bearish in the long-term, but neutral in the short-term. A strong opposition was particularly met at the support line at 1.1550, after which price bounced off the support line. However, that would turn out to be an opportunity to go short at a better price, for the outlook on EUR pairs is bearish for this week. One major task for bears is to break the support line at 1.1550 to the downside, as price goes further downwards.

 

 

USDCHF

Dominant bias: Neutral  

The bias on this pair has become neutral, especially in the face of the fact that USDCHF was characterized by trendlessness throughout June. Last week, price went upwards, to move above the resistance level at 0.9950, and then moved below that resistance (now close to the support level at 0.9900). As long as EURUSD remains weak, there will not be a significant bearish movement on USDCHF pair this week (although the pair will eventually give way to bearish pressures before the end of July).

 

GBPUSD

Dominant bias: Bearish

The market went smoothly downwards, testing the accumulation territory at 1.3050 (over 200 pips of bearish movement). After testing the accumulation territory at 1.3050, price rallied seriously and closed above the accumulation territory at 1.3200. The outlook on GBP pairs is bearish for this week, so a movement towards the accumulation territories at 1.3200, 1.3150 and 1.3100 are highly anticipated. There could even be a movement below the accumulation territory at 1.3100.

 

USDJPY

Dominant bias: Bearish

A Bullish Confirmation Pattern is present on the USDJPY. In the short-term, price rallied from the demand level at 109.50, to close above the demand level at 110.50 on Friday. This week, there could be further upwards movement towards the supply levels at 111.00 and 111.50. However, price is not expected to go further upwards than that because the outlook on certain JPY pairs is bearish for the month of July.

 

EURJPY

Dominant bias: Bearish   

This cross is bearish in the long-term, and bullish in the short-term. In short-term, a movement above the demand zone at 129.00 has resulted in a ‘buy” signal, which could enable price to reach the supply zones at 129.50 and 130.000, However, any movement to the upside would be limited, partly because of the ongoing weakness in EUR, which means price could also be retraced lower before the end of this week.

 

GBPJPY

Dominant bias: Bearish  

Owing to the present Bearish Confirmation Pattern in the chart, the bias on this trading instrument is bearish, but the strong bullish surge that was witnessed on Friday has posed a threat to the bearish outlook. On Thursday and Friday, price gained 250 pips, after testing the demand zone at 144.00. Should price gain another 200 pips this week, things will turn completely bullish. On the other hand, a downward movement from here would save the bearish bias.

 

 

 This forecast is concluded with the quote below:

 

 

“There are opportunities… It’s a matter of seeking them out, in the biggest playground of all... the markets.” – Louise Bedford  

 

Source: www.tallinex.com

 

 

 

 

[TitoC]

Now in EURUSD the question is how to deal in forex trading right now?

For the first time in over a year EUR/USD is trading below 1.15. The single currency has been trending lower since the beginning of the second quarter and has come close to testing this support level on numerous occasions. The meltdown in Turkey was the straw that broke the camel’s back, opening the door to the deeper slide toward 1.12. There wasn’t much Eurozone data released over the past week but the few reports we had were far from impressive as factory orders and industrial production in Germany tumbled. The calendar heats up in the week ahead with Q2 GDP, CPI and ZEW scheduled for release. However all that will take a backseat to Turkey’s troubles. Banco Bilboa Vizcaya Argentaria, UniCredit and BNP Paribas (PA:BNPP) have the greatest exposure to Turkish debt and many of their loans are unhedged. According to data from the Bank of International Settlements, Spanish lenders are the most exposed followed by Italian and French banks. Over the last year the Lira has lost 33% of its value and its cost of servicing its debt has risen to the highest level in 9 years. If Turkey’s economy crumbles more migrants could be headed to the EU, making Turkey a political and economic crisis for the region. From a fundamental and technical perspective, the euro is vulnerable to additional losses.